Market failures can be attributed to the inability of the both the public and private sectors to do good governance. " TRUE FALSE
Q: The fundamental characteristic of the corporateform of business organization that gives rise to the…
A: Answer:- Correct option is A.the seperation of ownership and control
Q: 3. Discuss whether over-diversification is a consequence of corporate governance failure.
A: Corporate governance refers to the set of rules, policies, and procedures to self-control the firm…
Q: Explain the problems of adverse selection and moral hazard caused by asymmetric information. How can…
A: A financial institution is a corporation or person who acts as another go for different parties in…
Q: What do you think is the main issue of conflict between the stockholders and managers?
A: There are various conflicts of interest that can impact manager's decisions to act in shareholders'…
Q: Greater role assumed by government in bailing out financial intermediaries – too big to fail…
A: Financial intermediary is referred as the institution or an individual, which act as a middleman…
Q: is there is a evidence that a more robust corporate governance could avert unethical issues?
A: Corporate governance is important as it makes the rules and regulations for the smoothening of…
Q: Which one of the following is not the underlying principles of the corporate governance? Fairness…
A: Corporate governance means management of the corporate or companies with the help of rules,…
Q: How are conflicts between the shareholders and the management created? Which of the following is…
A: Conflicts between the shareholders and the management majorly arise due to the differences in…
Q: 'Market structures are often criticised for being too unrealistic in their assumptions of how firms…
A: Answer:- Market structure meaning:- In economics, the market structure describes how the businesses…
Q: Inadequacies can be linked to the public and private sectors' incapacity to govern effectively.…
A: In the given question we need to tell that whether the given statement is true or false. Statement:-…
Q: There can be no proper corporate accountability without sound financial reporting” Critically…
A: Meaning of corporate accountability- There is an old adage that role of business is to do…
Q: 2 (a)There is a conflict of interest between stockholders and managers. In theory, stockholders are…
A: Shareholders are the people who invest money in the business for the purpose of earning returns.…
Q: Change is always good for some participants and bad for others. Which types of financial…
A: Investment banks, underwriters, brokerage companies, and deposit-taking institutions such as trusts,…
Q: ate accoun
A: Accountability is quintessence of any corporate governance debate despite that there is no unified…
Q: It is an axiom that may be characterized by managers making decisions that conflict with the best…
A: Agency problem arises during the time of dissatisfaction or conflict of interest between the…
Q: nature of corporate governance damages the financial stability c
A: Option "b" is wrong because compliance of corporate governance with formal laws will result in…
Q: Which of the following objectives of the company creates immoral practices such as: corrupt…
A: In Welfare maximisation, company works for the wellbeing of society, people, environment etc. If an…
Q: How does a deterioration in balance sheets of financialinstitutions and the simultaneous failures of…
A:
Q: What are the possible actions that a firm can take if it experiences a financial failure?
A: Financial failure of the firm could be resulted because of overspending, higher degree of illiquid…
Q: The whole essence of financial institutions is the prevention of institutional failures? Explain
A: Financial institutions are those companies engaged in activities that result in collection and…
Q: Which of the following is not an advantage of technical analysis identified by technicians? a.…
A: Financial analysis is the process through which the budgets, operations, projects, businesses, and…
Q: The "Discipline of the Market" means that in a competitive market customers and investors deal with…
A: The question is based on the concept of working of market in perfect competition. A financial…
Q: open
A: Open market operations refer to the act of purchasing or selling the securities of the government by…
Q: Which of the following is TRUE about the strong form of market efficiency? Insider information…
A: Market Efficiency Hypothesis (MEH) is an assumption which states that prices of the securities/stock…
Q: Explain how pure risk has an adverse effect on the economy
A: Pure risk is one of the major type of risk which is beyond the control and can affects the economy…
Q: the relative lack of government regulation is an advantage of corporate form of business true…
A: Corporate is the business organization distinct from its members having its own existence.
Q: Asymmetric information makes it hard for investors to sell securities. Banks, meaning both…
A: Asymmetric Information means the possession of greater knowledge by one than the other.
Q: Which of the following is an example of the agency problem? a. Managers always invest in projects…
A: Agency Problem is a kind of a conflict of interest between the management and the shareholders of…
Q: What does it mean to say that managers should maximize shareholders' wealth "subject to ethical…
A: The main focus of the manager should be maximizing the shareholder’s wealth. More profit indicates…
Q: TRUE OR FALSE Financial sector creates products for the management of risk, thus risk can be…
A: Risk management is the process of identifying, analyzing, and accepting or mitigating uncertainty in…
Q: FinTech firms are facing increased regulatory oversight. A risk event at a FinTech firm can result…
A: The danger of losing money on an investment or business endeavor is referred to as financial risk.…
Q: Why the limitation of portfilio analysis is it naively following the prescriptions of a portfolio…
A: In general, small businesses will offer only one product or service. But as the expansion of…
Q: Which of the following statements about fundamental analysis is least likely accurate? a. It…
A: Fundamental analysis is an essential analysis technique used to analyse business and it's value.
Q: What does it mean to say that managers should maximize shareholder wealth "subject to ethical…
A: A company's primary goal is to raise the value of its stocks in order to maximize shareholder…
Q: Explain what is meant by adverse economic consequences of new or changed accounting standards.
A:
Q: What are the disadvantages of the financial intermediaries and the negative ways they can impact the…
A: A financial intermediary is that entity that acts as a middleman in a financial transaction taking…
Q: discuss why financial markets should be regulated
A: Financial markets is the market which is in-fact actually not a physical market where is the goods…
Q: Examples of systematic risk include a new competitor in the marketplace with the potential to take…
A: Unsystematic Risk: Diversifiable Risk is another name for this type of risk, which is easier to…
Q: Which of the statement is TRUE in Managements’ Attitude as part of factor influencing the decision…
A: Under financial management, there can be either a conservative or aggressive approach. The…
Q: Even if corporate social responsibility is not strategic, it is still beneficial for a firm in the…
A: ANSWER ÷ True Even if corporate social responsibility is not strategic, it is still beneficial for a…
Q: Why is pro forma earnings reporting coming under scrutiny? How can you mitigate the "bad press"…
A: Pro forma earnings reporting refers to those financial statements that have hypothetical amounts as…
Q: A company's financial management and stockholders might be harmed by their overconfidence.
A: Introduction: The corporation may either sell its equity shares to the public or purchase them on…
Q: 1. How would you suggest the standard-setter or the regulator mitigate the potensial decrease in…
A: Here asked about the standard setter or the regulator mitigate the potential in the decrease in the…
Q: Which of t
A: Options A is a measure to safeguard because continuing the professional development will increase…
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- Explain the problems of adverse selection and moral hazard caused by asymmetricinformation. How can financial intermediaries alleviate those problems?Inadequacies can be linked to the public and private sectors' incapacity to govern effectively. TRUE FALSE.Change is always good for some participants and bad for others. Which types of financial institutions appear best situated to gain or lose from regulatory changes aimed at enhancing competition within the financial services industry?
- The "Discipline of the Market" means that in a competitive market customers and investors deal with firms that behave well, and leave those that do not. They avoid too much risk and flock to firms that pay the best. Then the good actors succeed, and the bad actors go out of business naturally. If the Discipline of the Market apply to financial services, then why do we need regulation and why do we need government restrictions where the free market should apply?'Market structures are often criticised for being too unrealistic in their assumptions of how firms operate. However, they can serve as beneficial to businesses as they enter new markets'Discuss this statement by drawing on the market structuresUnder what type of financial risks you would put these risk factors? Economic Distress Mismanagement Technological Causes Working Capital Problems Fraudulent Management Lack of board effectiveness Boards' risk blindness Poor leadership on ethos and culture Defective communication Excessive complexity Inappropriate incentives Information "glass ceiling" Managerial inefficiency and ineffectiveness Over expansion Ineffective sales force High production costs Poor financial management Risk assessment strategy Inappropriate commercial policy Absence of manpower training and development policy Capital inadequacy Socio cultural factors Income instability Public policy
- Which of the following statements about fundamental analysis is least likely accurate?a. It combines all factors of business such as models, competitive advantage, management, and corporategovernanceb. It analyzes the industry and the macroeconomic and its effect to the securityc. It includes measurement of risk such as political, legal, social, and environmental.d. It is subjective and it assumes that intrinsic value cannot be measured but rather it is opinionatede. All of the abovef. None of the aboveHow are conflicts between the shareholders and the management created? Which of the following is most accurate? a. They have either different political or religious beliefs. b. They have different views on how to manage people. The shareholders want a more liberal approach while the management wants micromanaging. c. The management would want to undertake higher risk projects in anticipation of higher returns because management compensation and bonuses are partly tied to financial performance, while shareholders may want to limit risks and invest instead in projects with lower risk. d. None of the choices are correct.Economic consequences of accounting standard-setting means:a. standard-setters must give fi rst priority to ensuring that companies do not suffer any adverseeffect as a result of a new standard.b. standard-setters must ensure that no new costs are incurred when a new standard is issued.c. the objective of financial reporting should be politically motivated to ensure acceptance by thegeneral public.d. accounting standards can have detrimental impacts on the wealth levels of the providers of financialinformation.
- Which of the following best characterizes an agency problem? Group of answer choices a spending corporate resources b dislike of firm's bondholders by its equity holders c differing incentives between managers and owners d friction between the primary and secondary marketsWhich of the following objectives of the company creates immoral practices such as: corrupt practice, unfair trade practice, etc.? Select one: A. None of the given options B. Profit Maximization C. Welfare Maximization D. Wealth MaximizationPLEASE IDENTIFY AN ORGANIZATION If a firm is performing poorly financially, what might this say about the differentiators, arenas, or both? Use a specific organization as an example and apply Hambrick and Frederickson's Strategy Diamond in your response.
